Interesting piece. The premise is certainly correct ie the investment problem has been solved. This is great news for clients because now they can focus on other ways to increase their net worth. The decision tree splinters into a million pieces at this point bc people are just so diverse in their thoughts, feelings and worldviews. We've tried hard to build a culture of genuine expression so that we can attract people who are truly like-minded. As my Jr advisor would say: "your vibe attracts your tribe"
"... now they can focus on other ways to increase their net worth" is the mantra of the Wizards for sure. "... now they can focus on what's actually important to them" is the domain of the Shamen. I suppose for some people "MORE MORE MORE" is what's actually important to them. I tend to avoid those people.
Depends on the starting point of your clients. The less you have, the more nobility in the pursuit of "more." Helping a family plan for one parent to quit their job to spend more time with their kids (generic as it may seem) is a noble pursuit. Helping a wealthy business owner shelter another million from taxes is a completely different thing altogether.
On the other hand, helping a wealthy man plan for his death and succession is not less noble just because the guy is rich. And even if we don't discuss the deeper levels out loud, it takes shamanic wisdom to have those conversations eloquently and effectively.
A good summary. I'd also add as a tangent that many (not all!) of the Wizards have a vested interest in making they work they do sounding as arcane and unknowable as possible. After all, if anybody really understood how much of a f*ck-up Gandalf is -- and he is, oh boy is he ever -- would anybody in Rivendell really ever have trusted him to lead their darling little hobbits to Mordor?
Job security is a concern for the Shaman and the Hand too of course, but I guess I've been watching too much LotR lately :D
This is such a great overview on how advisors have evolved to increase their value add to clients. The increase in financial information, easier access to investment vehicles and decrease in investment vehicle costs (due to the emergence of ETFs) has forced advisors to migrate up the food chain in terms of advice. The other corollary to this is that having clients of higher net worth is essential since this is where the higher t value can be added and is required for the advisor team to drive revenue. Great piece.
Dave, perfect topic for you and love your perspective here. Advisors are trusted by their clients and expected to add value on any key topic that has a financial dimension. This means, helping their children with financial planning and learning about investing, understanding how to evaluate senior life care communities, setting up investment portfolios so their heirs can adapt to the holdings to their lifestyles and the like. I asked my nephew who is an advisor for Fidelity if he is thinking of getting a CFA and he said that in his experience so far, a graduate degree in psychology would be more helpful. In the age of post-defined benefit plan retirements, the challenge of investing to provide for those last few decades and for a family legacy is bewildering to most.
Love this -- and have heard that comment as well from many advisors. Agreed that the world is often bewildering once you've covered the first two levels of Maslow's pyramid. And the "normal" areas of focus -- social groups, communities, charities, churches -- are at best atrophied in modern society.
Do you have any shamen job openings?
Alas, I don't even have a job...
Interesting piece. The premise is certainly correct ie the investment problem has been solved. This is great news for clients because now they can focus on other ways to increase their net worth. The decision tree splinters into a million pieces at this point bc people are just so diverse in their thoughts, feelings and worldviews. We've tried hard to build a culture of genuine expression so that we can attract people who are truly like-minded. As my Jr advisor would say: "your vibe attracts your tribe"
"... now they can focus on other ways to increase their net worth" is the mantra of the Wizards for sure. "... now they can focus on what's actually important to them" is the domain of the Shamen. I suppose for some people "MORE MORE MORE" is what's actually important to them. I tend to avoid those people.
Depends on the starting point of your clients. The less you have, the more nobility in the pursuit of "more." Helping a family plan for one parent to quit their job to spend more time with their kids (generic as it may seem) is a noble pursuit. Helping a wealthy business owner shelter another million from taxes is a completely different thing altogether.
On the other hand, helping a wealthy man plan for his death and succession is not less noble just because the guy is rich. And even if we don't discuss the deeper levels out loud, it takes shamanic wisdom to have those conversations eloquently and effectively.
A good summary. I'd also add as a tangent that many (not all!) of the Wizards have a vested interest in making they work they do sounding as arcane and unknowable as possible. After all, if anybody really understood how much of a f*ck-up Gandalf is -- and he is, oh boy is he ever -- would anybody in Rivendell really ever have trusted him to lead their darling little hobbits to Mordor?
Job security is a concern for the Shaman and the Hand too of course, but I guess I've been watching too much LotR lately :D
Most Shamen are likely on the verge of unemployment or are compensated for something unrelated to their actual value to their clients.
And yes, obfuscation and parlor tricks are absolutely part and parcel of a lot of investment management wizards.
This is such a great overview on how advisors have evolved to increase their value add to clients. The increase in financial information, easier access to investment vehicles and decrease in investment vehicle costs (due to the emergence of ETFs) has forced advisors to migrate up the food chain in terms of advice. The other corollary to this is that having clients of higher net worth is essential since this is where the higher t value can be added and is required for the advisor team to drive revenue. Great piece.
Dave, perfect topic for you and love your perspective here. Advisors are trusted by their clients and expected to add value on any key topic that has a financial dimension. This means, helping their children with financial planning and learning about investing, understanding how to evaluate senior life care communities, setting up investment portfolios so their heirs can adapt to the holdings to their lifestyles and the like. I asked my nephew who is an advisor for Fidelity if he is thinking of getting a CFA and he said that in his experience so far, a graduate degree in psychology would be more helpful. In the age of post-defined benefit plan retirements, the challenge of investing to provide for those last few decades and for a family legacy is bewildering to most.
Love this -- and have heard that comment as well from many advisors. Agreed that the world is often bewildering once you've covered the first two levels of Maslow's pyramid. And the "normal" areas of focus -- social groups, communities, charities, churches -- are at best atrophied in modern society.